Union Pacific CFO still expects peak fall shipping season
(Dow Jones Newswires circulated the following on September 10, 2010.)
NEW YORK Union Pacific Corp. (UNP) is standing by its view that intermodal volume is building toward a peak fall shipping season, although Chief Financial Officer Rob Knight acknowledged industry uncertainty regarding the trend.
"All indications from our customers are that they do expect to see more of a bump than they're seeing right now," Knight said, speaking Thursday during a Credit Suisse conference in New York.
The National Retail Federation has predicted that July--rather than the traditional month of October--will turn out to be the 2010 peak for imported intermodal containers of consumer products and other goods through U.S. ports.
The trade group has said many retailers appear to have stocked up early, partly to avoid possible shipping delays caused by capacity constraints later in the year.
But Knight said his railroad has continued to see a steady rise in weekly carloadings.
"We are seeing some normal seasonality...with the start of peak shipping season," he said.
He cautioned that peak season for imported intermodal containers may turn out to be "more of a bump" than a "historical, traditional spike."
But "being in a position to discuss volume growth is a welcome change" regardless in the wake of the economic downturn, he said.
A CSX Corp. (CSX) executive said at a separate conference Wednesday that CSX also expects a peak fall season, with strength in intermodal shipments continuing through the second half of the year.
Union Pacific said Thursday that its overall third-quarter freight volume through August is up 13%, compared to the same period last year. The year-over-year growth marks a slowdown from the second quarter's 18% rate, although Knight called the trend solid regardless.
The railroad's intermodal volume is up 24% so far in the third quarter, compared to the same period last year.
